The Financial Sector Development Program (FSDP) in Saudi Arabia has announced the release of its Annual Report for the year 2024, showcasing the program’s accomplishments over the past year and its future objectives within the framework of Saudi Vision 2030. The report highlights FSDP’s projects and initiatives that foster economic growth.
Minister of Finance and Chairman of the Financial Sector Development Program Committee, Mohammed Aljadaan, emphasized that FSDP continues its successful journey within the suite of programs under Saudi Vision 2030. This program plays a vital role in shaping an economic future that reinforces Saudi Arabia’s standing both regionally and internationally, reflecting the significant development seen across all sectors during this prosperous era, led by Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister.
Advancements in fintech sector
The minister noted that the report illustrates part of this success, demonstrating how those achievements enhance the resilience and growth of the financial sector in the Kingdom while bolstering economic transformation and financial stability. He highlighted the program’s advancements in the fintech sector over the last year, reporting that the number of licensed fintech companies reached 261 by the end of 2024. Furthermore, the Saudi Central Bank (SAMA) has continued to improve digital payments, including granting approval for D360 Bank to begin operations. Significantly, electronic payments represented 79 percent of total retail transactions in 2024.
Minister Aljadaan added that the momentum of the Saudi financial market persisted throughout 2024, through the development of rules and regulations designed to create a supportive environment for companies. This led to the approval of the offering and listing of 44 companies, increasing the total number of listed companies to 353 by the end of 2024.
The report serves as a crucial tool for highlighting efforts to achieve strategic objectives and enhance transparency. It also underscores the Kingdom’s commitment to advancing the financial sector to meet the aspirations of investors.
Saudi finance sector’s total assets growth
Last week, the Saudi Central Bank (SAMA) unveiled its latest Annual Performance Report for the Saudi Finance and Real Estate Refinance Companies Sector for the year 2023. The report emphasized several key developments and financial metrics for the sector during this period.
The paid-up share capital for the finance companies sector rose by 6 percent, reaching SAR15.5 billion ($4.13 billion).
Additionally, total assets increased by 13 percent to SAR64.2 billion ($17.1 billion). The total finance portfolio expanded by 12 percent, amounting to SAR84.7 billion ($22.58 billion).
The report also highlighted that the net income of the finance companies sector stood at SAR1.7 billion ($453.28 million). In the real estate refinancing sector, total assets experienced a substantial 48 percent increase, reaching SAR31 billion ($8.26 billion).
In terms of the loan portfolio breakdown, the retail sector represented the largest share at 77 percent, followed by the Micro, Small and Medium Enterprise (MSME) sector at 20 percent, and the corporate sector at 3 percent.
Moreover, by the end of 2023, the number of employees (both male and female) working in finance companies exceeded 6,000, with Saudis constituting 86 percent of the total workforce.
